The Effect Of Human Capital Investment On Employment Of Landless Farmers

Landless farmers are the inevitable products of urbanization and with its rapid process in china, more and more farmers are losing their land and the problems related to landless farmers come out accordingly. As the key issue of landless farmer problems, employment can not only bring social benefits by maintaining society stability and promoting national economy development, but also produce microeconomic benefits by increasing the income of landless farmers. Therefore, it is of realistic and social significance to find a suitable way for sustainable employment of landless farmers.The crucial issue for solving the employment problem of landless farmers is to make them have some competition advantages in the current labor market. However, the reality is that the human capital of China's landless farmers is extremely low, mainly focused on low education degree, lack of labor skills, old concepts and poor ability to adapt new environment. With the transformation of economic growth mode from extensive to intensive and gradually increasing contribution of human capital to economic growth, this is conflicted to the increasing social demands for high-quality labor force. Therefore, to ensure the employment of landless farmers, it is extremely important to improve their labor skills and update their concepts by the investment for human capital of landless farmers.The number of landless farmers is forecast based on the relationship among urbanization level, urban construction land and landless farmers. From the perspective of human capital investment, the factors limiting the employment of landless farmers are analyzed. Through introducing the Todaro model of human capital, the returns of human capital investment on landless farmers'employment, the estimation of return ratio of human capital investment as well as the uncertainty and risk for human capital investment on landless farmers are discussed. The effect of human capital investment on landless farmers'employment is also investigated. The suggestions to improve the landless farmers'employment are proposed: enhancing humancapital investment to the knowledge and skills of landless farmers by education and training; improving the rural medical conditions and enhancing health investment for rural labor force; raising farmer's enthusiasm to invest on their human capital.